Broadcasters May Go To EC To Block Digital Licence

According to press reports, the proposed £24 digital licence outlined last week, may be ruled illegal by the European Commission. The BBC’s digital rivals are said to have taken advice about the legality of the increase, which would come into effect from next April.

The final report of Gavyn Davies’ Funding Review Panel (see Digital Licence Fee Could Be £24), suggested that a digital licence supplement would be the best way of funding the BBC’s new digital services. Earlier reports regarding a licence fee increase had been met with united opposition see Commercial Broadcasters Unite Against BBC ‘Digital Tax’).

A spokesperson for the alliance of commerical broadcasters, which include OnDigital, Sky Digital and the ITV companies, told Newsline this morning: “There is a potential issue here about state funding. There are ongoing discussions between the European Commission and broadcasters.”